Skip to content

NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

A DP receives a delivery instruction slip from a BO. Which check is most essential before the DP processes the debit instruction in its system?

The DP must verify the BO's signature on the DIS against the specimen signature recorded at account opening. This confirms the instruction is authentic before debiting securities. Issuer approval, relationship between BOs, or a bank account with the same DP is not a requirement for processing.

  1. AVerifying the BO's signature on the DIS against the specimen signature held with the DPCorrect
  2. BConfirming that the BO holds a bank account with the same DP
  3. CObtaining the signature of the issuer company on the slip
  4. DChecking that the receiving BO is a relative of the sender

Explanation

The DP must verify that the DIS is genuine by matching the signature(s) with the specimen signatures recorded at account opening, and also check the slip's serial number and the account details. Issuer signature, family relationship, or same-DP banking are not required for processing.

Did you get it right without looking?

One question tells you little. A timed set on Functions of Depository Participant - Account Operations shows your real accuracy, how long you take and where you lose marks.

Practise Functions of Depository Participant - Account OperationsFree diagnostic mock

More Functions of Depository Participant - Account Operations questions